Marketing Management

This report focuses on evaluating the market opportunity implementation for launching the new 2020 version of Toyota in Malaysia. It covers the size of the automobile market, market segments, Toyota's marketing strategy, performance, Malaysian automobile marketing environment, competitive analysis, and proposed marketing strategy for the Fortuner.

MARKETING MANAGEMENT 1
Marketing Management
By (Name)
Name of the Course
Title of the Instructor
Institutional Affiliation
City and Date
The final date of Submission

MARKETING MANAGEMENT 2
Table of Contents
1.0 THE PURPOSE OF THE REPORT..........................................................................................4
2.0 AUTOMOBILE MARKET IN MALAYSIA.................................................................................5
2.1 Size of the market and market segments................................................................................5
2.3 The SUV market segments.....................................................................................................6
3.0 THE TOYOTA FACTOR............................................................................................................6
3.1 Brief History of Toyota Motors..............................................................................................6
3.2 Toyota’s marketing strategy for the SUV category in delivering value to customers...........7
3.3 Toyota’s Performance...........................................................................................................7
3.4 Toyota’s performance in the SUV segment...........................................................................7
4.0 THE MALAYSIAN AUTOMOBILE MARKETING ENVIRONMENT........................................9
4.1 PESTEL Analysis...................................................................................................................9
4.2 The social and cultural factors impacts...............................................................................11
4.3 The economic Factors Impact.............................................................................................11
4.4 Technological factor impact................................................................................................12
4.5 Environmental factors impact..............................................................................................12
4.5 The overall conclusion of the Analysis together with its impact on the Toyota brand........12
5.0 THE COMPETITIVE ENVIRONMENT FOR THE SUV SEGMENT......................................12
5.6 The overall conclusion from the Analysis and its impact of the entire Toyota Company...13
6.0 ANALYSIS OF THE KSF FACTOR IN THE SUV MARKET..................................................14

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6.1 Identification of the KSF’s...................................................................................................14
6.2 How does the fortune score in the KSF test?.......................................................................14
6.3 The conclusion from the analysis........................................................................................15
7.0 COMPETITIVE ANALYSIS OF THE FORTUNER.................................................................15
7.1 The competitive analysis..........................................................................................................15
7.2 The conclusion from the analysis............................................................................................16
8.0 ROLE OF MARKETING RESEARCH.....................................................................................16
8.1 Proposed marketing research..............................................................................................16
8.2 Expected findings.................................................................................................................16
9.0 PROPOSED MARKETING STRATEGY FOR THE FORTUNER...........................................17
9.1 A summary of the SUV marketing environment...................................................................17
9.2 Objectives for 2019 and 2020..............................................................................................17
9.3 Target market segment........................................................................................................17
9.4 Profile of the target consumer.............................................................................................17
9.5 Packing value proposition...................................................................................................17
9.6 Promotion of the fortune......................................................................................................18
9.7 Service factor..................................................................................................................18
9.8 The place factor...................................................................................................................18
9.9 People factor........................................................................................................................18
10.0 STRATEGIC CONTROL........................................................................................................19

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11.0 CONCLUSION......................................................................................................................19
References......................................................................................................................................21
APPENDICES................................................................................................................................26
Appendix 1: Automobile market in Malaysia............................................................................26
Appendix 2: Toyota history........................................................................................................26
Appendix 3: Marketing environment for the Malaysian automobile.........................................26
Appendix 4: The competitive environment................................................................................27
Appendix 5: Key success factors................................................................................................27
1.0 THE PURPOSE OF THE REPORT
The primary purpose of the story mainly aims towards focusing on the evaluation of the market
opportunity implementation that is entirely concerned with launching the new 2020 version of
the Toyota within the Company's portfolio that is set to take place within the boundaries of
Malaysia (Battram et al. 2016). This will, therefore, bring an adequate and reasonable
understanding of what is taking place in the current situation together with what is likely to take
place in the coming future.

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2.0
AUTOMOBILE MARKET IN MALAYSIA
2.1 Size of the market and market segments
The market segment for cars in Malaysia is significantly large with many large and small
players vying for the top spot. The Malaysian Automobile industry has a sales volume of 580000
motor vehicles annually. The country approximately has 30 million inhabitants. The automobile
industry of the country however is growing at a slower pace. In the ASEAN zone the country is
ranked third. In the last year around 380,000 cars were sold in the country. There was the sale of
73,000 MPVs and 61,000 SUVs. It can be said that the market of vehicles in the country is not
moving at a fast rate but stable. There is significant scope for growth in the market despite the
lower growth figures in the present times. The revenue that was generated by the car market
sector of the company was around 28.6 Billion in Malaysian Ringgit. The export value of
manufactured vehicles in Malaysia is estimated at RM 7.46 Billion.
2.2 Key players together with their respective market share
Rank Brand Market Share
2017
Market Share
2018
+/-
1 Perodua 35% 38% 10%
2 Honda 19% 17% -6.6%
3 Toyota 12.1% 10.9% -5.7%
4 Proton 12.3% 10.8% -8%
2.3 The SUV market segments
The market segment that is attached to the SUV tries to cover various customers known to be
residing in different locations (Gupta 2016). Government organizations appear to be one of the
significant SUV market segments which is known to be purchasing this brand of Toyota in large

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quantities. Moreover, several other organizations including the non-governmental organizations
also play an essential role when it comes to acting as one of the significant market segment that
is attached to the SUV. 3.0 THE TOYOTA FACTOR
3.1 Brief History of Toyota Motors
The Toyota Motors in Malaysia was founded as the Sejati Motor in 1982. In the year 1987, the
company became the UMW Toyota Motors. The company was a joint venture company between
the United Motor Works and the Toyota Motor Corporation. Additionally, Toyota Tsusho of
Japan was also a part of this joint venture. In the 1960s the vehicles of Toyota were imported
first to Malaysia. The first unit however was imported much before in the 1956 and was the Land
Cruiser. The 1970s was the time of the economic boom in Malaysia. The Japanese companies
like Toyota were able to consolidate their position in the market. In 1980, the company set up an
office in Kuala Lumpur. In the 1982 the Sejati Motors were established. Vehicle production for
Toyota in Malaysia became cumulatively 1 million in 2011.
3.2 Toyota’s marketing strategy for the SUV category in delivering value to
customers
The major factor of differentiation of the Toyota products in Malaysia are the relatively
lower costs for the SUV in terms of the quality that is being delivered. The Toyota cars in the
country are constant with the standards of production that the Company is Famous for. However,
at the same time the company provides higher value for cost. The Rush is one of the premier cars

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in the country for Toyota in the SUV segment. The other important SUV are Hilux, Fortuner and
Innova. The company faces competition from the Perodua models. The company focuses greatly
on providing quality for money value. The SUV models of Toyata are lesser in number than
many of the competitors. However, the value of quality is important in making the products
differentiated.
3.3 Toyota’s Performance
Passenger vehicles
Year Units sold Market share
2016 44,586 7%
2017 47615 9.3%
2018 43446 8.1%
Commercial vehicles
Year Units Sold Market Share
2016 19,171 29.2%
2017 21,877 35.3%
2018 22,105 33.7%
(Source- Lye et al. 2019)
3.4 Toyota’s performance in the SUV segment
As far as the SUV segment is concerned, the production of the Toyota model has been currently
increasing at a higher rate within the automobile market platform. This has further increased its
performance in the SUV segment to greater heights and even going as far as attracting the
attention of multiple personalities (Ye and Wu 2016).
Year Unit Sold Percentage

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2016 12,000 1.1%
2017 11496 2%
2018 12546 2%
4.0 THE MALAYSIAN AUTOMOBILE MARKETING ENVIRONMENT
4.1,PESTEL Analysis
Situation Impact on Industry Threat or opportunity
Political The political conditions in
Malaysia are stable. The
government policies are
focused on improving trade
and business in the region.
GST removal by the
government would ensure
that the production processes
would not incur more tax
costs hence, it becomes
important that the same is
used as an advantage by
automobile companies
(Malaysia.gov.my 2019).
Foreign investment is
not restricted in the
country and this can
boost the automobile
sector as well. The
opportunity is good
as the stable political
system can help to
garner much
important
consolidated position
in an industry that is
greatly supported by
the government.
The factors such as
resource utilization
and production will
be enhanced.
However, there is a
threat in in future the
government may
actually be voted out
of power causing a
shift in the outlook of
the administration.
Economic The GDP of the country are
on an upwards momentum
with predictions of it
reaching further growth in
the new year. However,
Malaysia relies much on
external trade and this can
affect the economy of the
country (Young and
Wilkinson 2016).
A good GDP means
that the prospects of
the automobile
industry will also be
good.
However, there is a
threat that the
automobile industry
might face due to
lower growth rate.
The economy can be
utilized for better
gains. However,
external trade
economic risks can
cause the company to
be affected by
production cost issues
in the future.
Socio-Cultural The active working age
population of Malaysia is
projected to grow by around
1.6%. Moreover, a literacy
rate of over 95% ensures that
The youth population
of the country is
growing. As this is a
major target area of
the automobile
The young population
can be utilized to
create better
marketing
opportunities

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there is a significant level of
higher to middle income
group (Suki and Salleh
2016).
industry, this is
bound to work in the
favor of car
manufacturers.
Technological E-commerce is booming in
the country. The car
manufacturing technology is
also witnessing significant
growth along with the latest
software in car designing
including the increased use
of 3d printers (Yi et al.
2018).
This would boost the
technology usage in
cars. There is scope
for optimal growth.
In future the
technology can be
utilized to make
better and more
effective vehicles.
Environmenta
l
Environmental concerns are
significant in Malaysia. Cars
usually produce pollution
causing effluents. Hence, the
automobile industry has to
function in accordance with
the regulations for
controlling pollution.
This is a significant
issue and the car
manufacturers in the
country will have to
provide much
importance to this.
The environmental
aspects needs to be
judiciously
considered. There is a
threat of stricter laws
being imposed in the
future.
Legal The Companies act of
Malaysia came into force in
2017 (Malaysia.gov.my
2019). It applies to all
Malaysian companies. The
laws are focused towards
reducing cost for doing
business.
The automobile
industry of the
country can greatly
benefit from the
same. The
opportunities can
mean greater effort to
the given on the other
operational aspects of
the manufacturing
process and
marketing functions.
However, the law can
change in the future
and result in lesser
benefits for the
company.
4.2 The social and cultural factors impacts
Both the social and cultural factors are known to have impacted on the Malaysian Automobile
marketing platform where various personalities have been able to interact with people from

MARKETING MANAGEMENT 10
different regions thus exchanging various ideas regarding their perceptions on the issues taking
place within the automobile marketing platform (Machová, Huszárik and Šimonová 2016).
4.3 The economic Factors Impact
The nature of the Malaysian economy has been able to impact significantly on the Malaysian
automobile marketing environment through a variety of ways. Tough economic times within the
country have ended up causing an increase in the price of various automobile-related products
and services (Karahan et al. 2016).
4.4 Technological factor impact
The implementation of various form of technology within the Malaysian marketing environment
has made it much easier to carry out the distribution of multiple products and services to
different customers who are known to be situated in various locations.
4.5 Environmental factors impact
Quite several ecological factors have been able to impact on the Malaysian automobile
marketing environment thus affecting the rate at which various products and services are being
distributed to several other locations.
4.5 The overall conclusion of the Analysis together with its impact on the Toyota
brand
There is the need to adequately implement various laws and policies within the marketing
sector of the entire automobile industry since this is one of the best ways of ensuring that
multiple operations are appropriately performed in a more reasonable and orderly manner.

MARKETING MANAGEMENT 11
(Godiwalla 2016) .On the other hand, the analysis is capable of adequately impacting on Toyota
as a company by making it change the way it implements a good number of its strategies
(Fernández, Mogollón and Cerro 2016). It can be said that Toyota needs to bank on the
commercial vehicle segment in order to improve their performance results. The brand Toyota is
rising in the country but at a slower rate than any of the other top companies. Toyota needs to
tread more cautiously in. the market
5.0 THE COMPETITIVE ENVIRONMENT FOR THE SUV SEGMENT
Porter’s Force Impact on the industry in Malaysia
Bargaining Power of the
Suppliers
In the SUV car oriented automobile sector is Malaysia a large
number of suppliers from various types. The suppliers in
Malaysia are large due to the relatively large number of
players operating within the car market of the country.
Bargaining power of the
customers
The bargaining power that has been encountered as a result of
multiple buyers has ended up reducing the rate of profits
received from the segment. The Malaysian SUV segment is
full of options such as Mazda, Perodua, Honda and even Audi
and Fiat.
Competition There are significant Rivalry in the Malaysian SUV market.
For example- Toyota has not been able to provide great
challenge to the SUV models of Perodua that controls a large
part of the market.
Threat of new Entrants New entrants like Audi are causing significant effects in the
SUV market of Malaysia. However, in general the threat of
new entrants are moderate. There are greater threats from the
existing companies that can significantly damage the SUV
segment market potential for the other companies.
Threat of Substitutes The motorbike and other forms of urban transportation markets
are improving in Malaysia. The streets are much crowded and
people are looking for more convenient options like samaller
vehicles and bikes. This is true even in case of travel and
family outings. Hence, the threat of substitutes are significant.

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5.6 The overall conclusion from the Analysis and its impact of the entire Toyota
Company
In case of Toyota, the Porter’s five forces reveals that there are significant threat of suppliers,
competitors and substitute products. The organization will do better to consider the threat from
the new entrants as well. It is important that Toyota focuses on achieving better relationships
with the suppliers if they want to improve their market performance.
However, he impact on Toyota Company still enables the organization to fully concentrate on
developing adequate and reliable strategies that can be used to overcome the threats.
6.0 ANALYSIS OF THE KSF FACTOR IN THE SUV MARKET
6.1 Identification of the KSF’s
Consumer Want Industry Response Key Success Factor
Comfort Comfort is very
important for the
customer in the SUV
industry of Malaysia.
The industry is
responding greatly to
the demands of the
consumers. Some of
the lesser players are
producing award
winning SUVs like
the Ford Fiesta,
Volkswagen
Vento,etc. Perodua
and Honda however
are best in meeting
customer
expectations.
Larger inside spaces,
Air Conditioning,
ventilation, leg space
and seating
arrangements are
essential.
Price Price is a significant
factor. Customer look
for cars between
price range of 90,000
RM to 300,000 RM
Some of the best
vehicles available
within this range are
Honda BRV, Honda
CRV, Isuzu, Mazda
Cx-3.
Medium price, low
post sale expense,
low maintenance
expense.
Good Quality Quality is significant Quality SUVs are Better Mileage, good

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as a factor.
Customers want high
quality SUVs
manufactured by
Perodua, Honda,
Mazda, Isuzu and
Toyota.
fuel capacity, quality
engine volume are
very important.
6.2 How does the fortune score in the KSF test?
Result of Price Fall Strong Medium Weak
Comfort 
Price 
Good Quality 
6.3 The conclusion from the analysis
In conclusion, it can be said that there is high demand for significant amount of comfort and
quality in medium prices. Fortune can bank on this as it provides significant amount of comfort
to the customers. If Fortune’s price tends to fall then although comfort and price remain in
medium demand, the good quality falls. People are looking to spend more for cars that provide
better quality. The price range focuses on the fact that people are more inclined towards medium
priced vehicles. Fortune can be an efficient car only if it is able to maintain medium price range.
7.0 COMPETITIVE ANALYSIS OF THE FORTUNER
Toyota SUV Honda CRV Mazda Csx
Price RM 170,000- RM
195,600
RM 135,400- RM to
RM 162, 800
RM 135,200-RM
161,657
Safety The safety features
that are being
provided by Fortuner
are great. The safety
feature is one of the
strongest points of
the company (Thoyib
and Rosita 2016).
The safety feature of
the Honda is not as
good as the Fortuner.
It is effective but is
not high level.
The safety feature of
Mazda Csx are very
effective. The car are
well suited to be even
driven along the more
rocky terrains.

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Fuel Efficeincy The fuel efficiency of
the fortuner is
significantly more
than many of the
other vehicles.
The fuel efficiency of
Honda is good but
slightly below the
level of the Fortuner.
The fuel efficiency of
the car is superb. It is
one of the best among
the SUVs that are
present in Malaysia.
Hence, it is a very
effective vehicle.
Key Toyota SUV Honda CRV Mazda Csx
Very unfavorable
Unfavorable
Average 
Strong  
Very Strong 7.1 The competitive analysis
Criteria Weight Toyota SUV Honda CRV Mazda Cx 5
Price 3 2 2.5 3
Safety 3 2 3 3
Fuel Efficiency 4 3 3 3
Total 10 7 8.5 9
.
7.2 The conclusion from the analysis
The biggest competitor in accordance of the findings was Mazda Cx 5. The company has
a significant level of performance in regards to both price, safety and fuel efficiency. It is
important to understand that the company is affected by its competitors greatly. If Fortuner is to
perform efficiently in the market, they would need to take care of the competitive factors of

MARKETING MANAGEMENT 15
Mazda Cx 5 (Masoud and Ahmed 2016). It is important to note that Fortuner faces stiff
competition from many other companies like Audi and Perodua.8.0 ROLE OF MARKETING RESEARCH
8.1 Proposed marketing research
According to the proposed marketing research, the entire study will be carried out through the
use of interviews of various individuals who will be able to provide reliable information that is
best for the analysis (Randhawa, Wilden and Hohberger 2016). The interviews will enable to get
a better understanding of both the existing marketing factors and the factors that can
subsequently affect the organizations. The marketing environment and the needs and wants of
the general public should be given much importance. For this reason the interview tool would be
much more effective than the other available tools.
8.2 Expected findings
The research is likely to come up with a result which talks about various activities being carried
out within the market platform about the supply of various goods and services. The research
would focus on finding out the ethnographic and socio-economic factors that might affect the
consumer purchasing decisions for the SUV. It is important that the car is treated as a commodity
that is to attract a range of attention from the public based on the offerings that are being made.
The findings that are expected are the more inclination of the younger generations towards
Fortuner.

MARKETING MANAGEMENT 169.0 PROPOSED MARKETING STRATEGY FOR THE FORTUNER
9.1 A summary of the SUV marketing environment
The SUV marketing environment has been targeting various consumers of different classes
through the implementation of quite several strategies that are capable of attracting most of the
targeted consumers thus making them get involved in purchasing the product. (Shandini and
Ramani2016).
9.2 Objectives for 2019 and 2020
The primary goals for 2019 and 2020 are to offer quality and reliable products that are fitted with
advanced forms of technologies to carry out quite several operations. The company wants to
become of the leading SUV manufacturers in the country. The company wants to gain further
momentum over its close rivals, the Perodua and Honda with a market gain of at least 50% over
them.
9.3 Target market segment
Target market segments mainly consist of different organizations together with various
government agencies situated in various parts of the world. The customer segmentation of
Fortuner based on Urban, Sub-urban and Rural income groups:
Income Urban Sub-Urban Rural
High  
Medium 
Low

MARKETING MANAGEMENT 17
9.4 Profile of the target consumer
As far as the profile of the target consumer is concerned, the consumer should be one who
understands what it means to keep track of the engine performance of the SUV model and be
ready to respond to any emergencies that are likely to occur during production on the road.
9.5 Packing value proposition
The packing value will be equivalent to an approximation of $20,500 that will aim towards
giving one of the best products that are of high quality and lasts longer to serve the needs of a
given customer irrespective of where he or she is situated.
9.6.1 Promotion of the fortune
The development of the fortune will be carried out through various forms of social media
platform together with several other internet related platforms to reach a wide range of
individuals within a short time frame (Shahbazzadeh, Rahiminik and Ardestani 2016). Moreover,
its sale will be majorly positioned at strategic locations where people can quickly get access to
the services without straining (Yücel and Görener 2016).
9.6.2 Tagline
The tagline for the Fortuner can be “Travel with your close ones”.

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9.7 Service factor
Quite several Toyota outlet store will be placed in various regions to offer multiple types of
spares and services to the clients who will be interested in buying the SUV. This aims towards
giving them an easy time to carry out their maintenance.
9.8 The place factor
AS far as the place factor is concerned, the Toyota outlet stores will be placed at strategic towns
where people will be able to find it easy to gain access to most of the services that they require
without experiencing any form of delay.
9.9 People factor
People factor will be able to determine the kind of personalities who will be able to purchase the
SUV and maintain it according to what is required to make it stay longer. The model, therefore,
aims towards putting its operations in an area where there are various types of both the middle
class and high-class individuals.10.0 STRATEGIC CONTROL
In case plan A fails, then plan B will be implemented which will involve the use of various sales
agents who will be given the mandate to move from place to place thus creating awareness of the
of how the automobile is capable of performing together with its price in the market. Toyota
would need to increase promotion by changing the focus groups which the Fortuner wants to
address through the marketing. The focus group would need to be the young businessmen, the
businessmen with families and the corporate employees with significant needs for travelling. The

MARKETING MANAGEMENT 19
cost of the car needs to be reduced by balancing the comfort and the fuel efficiency. The cost can
be cut on comfort to increase the fuel efficiency of the vehicles.
11.0 CONCLUSION
It is always essential to come up with a solid marketing strategy that is capable of scaling up the
performance of a specific organization thus making it much easier to reach out to various
customers irrespective of their areas of residence. Additionally, it is clear beyond any reasonable
doubt that Malaysian automobile industry is currently gaining popularity across various
personalities thus scaling up the nature of the market to greater heights that are capable of
meeting the needs of various customers known to be situated in different locations. On the other
hand, the Malaysian government has also been able to come on board with various rules and
regulations that aim towards governing the entire automobile sector through adequate control of
various operations taking place between the automobile industries and the customers living in
various locations. Moreover, the use of quite a number of ethical considerations among various
personalities within the automobile sector has been able to create one of the most reasonable
boundaries so far thus giving nearly all the automobile sectors within the market platform a
perfect opportunity to adequately evaluate on some of the things that they should do together
with the one that they should always avoid in order to come up with the desired outcome. There
are quite several laws and policies that are known to be controlling the entire Malaysian
automobile marketing environment. marketing environment for the Malaysian automobile is
known to constitute quite several factors that are capable of affecting the performance of the
entire industry (see appendix 3)

MARKETING MANAGEMENT 20
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APPENDICES
Appendix 1: Automobile market in Malaysia
Automobile Market in Malaysia has been gaining popularity over the past period thus making it
much easier to reach out to various clients regardless of the areas where they are situated. On the

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other hand, multiple companies are known to have thoroughly dominated the entire market
platform by providing quite several products and services related to the automobile industry.
Appendix 2: Toyota history
Toyota Company has always been on the forefront to reach out to a wide range of its consumers
known to be located in various situations through offering quite several products and services
that are of high quality with affordable prices that can be accessed by multiple personalities.
Appendix 3: Marketing environment for the Malaysian automobile
The marketing environment for the Malaysian car is known to constitute quite several factors
that are capable of affecting the performance of the entire industry. Moreover, this also
influences the way various operations are carried out under different environmental conditions.
Appendix 4: The competitive environment
The competitive environment is known to constitute quite a several threats that are obtained from
the competitors thus hindering the performance of various activities that are likely to be of

MARKETING MANAGEMENT 27
benefit to the consumers. Moreover, there is a need to come up with quite several competitive
strategies that will be able to outdo most of the competitors within the market.
Appendix 5: Key success factors
Critical success factors are some of the essential parameters in the SUV market, and they are
known to have led to the emergence of an adequate and reliable performance to the entire
Company. The SUV market has been able to increase its production to greater heights as a result
of KSF.